{"id":60384,"date":"2021-11-10T12:40:00","date_gmt":"2021-11-10T17:40:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60384"},"modified":"2021-11-10T12:40:00","modified_gmt":"2021-11-10T17:40:00","slug":"why-u-s-shale-wont-go-to-war-with-opec","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60384","title":{"rendered":"Why U.S. Shale Won\u2019t Go To War With OPEC+"},"content":{"rendered":"<h3><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Why-US-Shale-Wont-Go-To-War-With-OPEC.html\">Why U.S. Shale Won\u2019t Go To War With OPEC+<\/a><\/h3>\n<div id=\"key_points\" class=\"wysiwyg clear\">\n<ul>\n<li aria-level=\"1\">OPEC+ will be very happy with where oil prices currently are and is unlikely to change its course anytime soon<\/li>\n<li aria-level=\"1\">The U.S. does have the ability to increase production, but U.S. shale does not have support from either the government or shareholders to boost production significantly<\/li>\n<li aria-level=\"1\">The two bearish variables that could drag prices down in the near term are a strong dollar and the continuation of inventory builds<\/li>\n<\/ul>\n<\/div>\n<div class=\"articleImageContainer\"><picture class=\"lozad-picture singleArticle__articleImage\" data-iesrc=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2021-11-08_xvf1smjpex.jpg\" data-loaded=\"true\"><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/420x175\/2021-11-08_xvf1smjpex.jpg\" media=\"(max-width: 480px)\" \/><source srcset=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/2021-11-08_xvf1smjpex.jpg\" media=\"(min-width: 480px)\" \/><img \/><\/picture><\/div>\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>For years, the Kingdom of Saudi Arabia\u2019s economy has suffered from low oil prices. Since 2014 when it increased supplies to try and break American shale producers, Saudi Arabia has had to struggle with a flooded market. Its cash reserves have been drawn down by hundreds of billions and it had to sell a small percentage of its prize asset, Saudi Aramco. At the same time, Saudi Arabia\u2019s Vision 2030 plan fell behind in its lofty goals of diversifying its economy. I discussed this at some length in a prior\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Whats-Next-For-Oil-After-The-New-OPEC-Deal.html\">Oilprice article<\/a>.\u00a0Now with the price of Brent &#8211; the benchmark against which Saudi Arabia prices its production &#8211; finally back above the $80 mark, the Kingdom is beginning to refill its coffers. So it was no great surprise when the Saudis and the Russians, the two principal members of the OPEC+ cartel,\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/with-shale-subdued-saudi-russia-become-more-comfortable-with-oil-rally-2021-11-03\/\" target=\"_blank\" rel=\"noopener\">roundly rejected a demand<\/a>\u00a0from President Biden to increase production to ease the world\u2019s energy crisis.<\/p>\n<p>Up to this point, there had been some lingering concern on the part of OPEC+ that too high a price would reinvigorate the shale industry that had finally come to heel in early 2020.\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/us-shale-producers-signal-more-oil-coming-opec-counts-restraint-2021-11-03\/\" target=\"_blank\" rel=\"noopener\">Restraint on the part of shale drillers<\/a> since then has encouraged them that a new \u201cwar\u201d for market share won\u2019t be the result&#8230;<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Why U.S. Shale Won\u2019t Go To War With OPEC+ OPEC+ will be very happy with where oil prices currently are and is unlikely to change its course anytime soon The U.S. does have the ability to increase production, but U.S. shale does not have support from either the government or shareholders to boost production significantly [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[21205,592,595,596,5332,25704,723,827,4318],"class_list":["post-60384","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-david-messler","tag-oil-price","tag-oil-production","tag-oil-supply","tag-oilprice-com","tag-opec-2","tag-shale-oil","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60384"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60384\/revisions"}],"predecessor-version":[{"id":60385,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60384\/revisions\/60385"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}